Option Spreads and Credit Spreads Bundle

This 2-course bundle on Option spreads and Credit Spreads surgery is the bedrock of stable "Monthly Income Strategies"
4.5 (107 ratings) Instead of using a simple lifetime average, Udemy calculates a
course's star rating by considering a number of different factors
such as the number of ratings, the age of ratings, and the
likelihood of fraudulent ratings.
1,487 students enrolled
Instructed by Hari Swaminathan Business / Finance
$180
Take This Course
  • Lectures 32
  • Contents Video: 5 hours
  • Skill Level Expert Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
Wishlisted Wishlist

How taking a course works

Discover

Find online courses made by experts from around the world.

Learn

Take your courses with you and learn anywhere, anytime.

Master

Learn and practice real-world skills and achieve your goals.

About This Course

Published 3/2013 English

Course Description

COURSE BUNDLE - OPTION & CREDIT SPREADS STRATEGIES

THIS BUNDLE CONSISTS OF TWO COURSES

· OPTIONS SPREADS BUNDLE AND

· CREDIT SPREAD SURGERY (ADVANCED CREDITSPREADS)

Details of this bundle are provided here, but you may find more information on the individual course pages.

SECTION I - PHILOSOPHY AND DEFINITION OF SPREADS

We introduce option spread strategies in this module. Options spreads sit right in between the 4 basic Option positions and the more Advanced level Option strategies. The Spread is the bridge between the basic Option strategies and the advanced strategies. In fact, most advanced strategies are composed of the spreads we cover in this course, so this stuff is the key. For the busy professional, Spreads offer the right mix of reward and risk. All 4 vertical spreads introduced in this course are extensions of the 4 basic Options. Spreads add an element of cost control and / or risk control to individual Options positions. Master the four Options Spreads, and you would have acquired a skill that can create consistent monthly income. Additionally, you'll be well on your way to mastering the advanced Options strategies.

What you will master

  • Advantages and disadvantages of single Option strategies - Long and Short
  • How Spreads tackle the negatives of individual Options
  • With Spreads, you can now be a seller of Options
  • The meaning of "defined risk" Options investing
  • Spreads help you control your costs and risk exposure
  • What are the differences between credit and debit spreads
  • Control risk and costs without compromising on Probability

SECTION - II REAL LIVE TRADES ON THE 4 OPTION SPREAD STRATEGIES

THE BULL CALL SPREAD

The Bull Call Spread is an extension of the Long Call Option. When you buy a Call Option, you are bullish. The Bull Call spread maintains the bullish element of the Long Call while controlling your costs and has a limited losses profile. Of course, everything is a compromise. But you would probably be willing to make this compromise. We explain why this spread is called a Bull Call spread, and how to address any confusion from these strange names. The risk-reward profile of a Bull Call spread is very favorable. We define why the Bull Call spread is a Debit spread, and study its Profit and Loss diagrams in detail. We put a real trade on IBM and we navigate the trade for a couple of weeks.

THE BEAR CALL SPREAD

The Bear Call Spread is a credit spread, and we explain why credit spreads are a viable way to assuming an Option seller's profile. The Bear Call spread limits your risk. We study the role of Probability in selecting credit spreads as well as implied volatility considerations and time decay. Time decay is a key component of credit spreads and the Bear Call spread can be an excellent way to generate monthly income. All spreads can be part of the busy professional's playbook, but credit spreads can be especially attractive. We analyze the right criteria for credit spreads, including the selection of the expiry series as well as the individual Options itself. We put a real trade on Amazon (AMZN) and track, monitor and adjust this trade until its exit.

THE BEAR PUT SPREAD

The Bear Put spread can be a powerful strategy for bear markets. The Bear Put is an extension of the Long Put Option. The Bear Put has some specific features, which make it a very attractive spread, and we dig deep into these characteristics. We put a real trade on Netflix (NFLX). The risk reward characteristics of Bear Put spreads are very attractive as its losses are limited. The Bear Put, just like the Long Put is a Vega positive trade, so this trade can optimize a bearish move as well as any upside from implied volatility changes. The choice of expiry series, time decay effects and the choices of individual Options are also important.

THE BULL PUT SPREAD

The Bull Put spread is a flat to bullish that profits primarily from time decay, but can also profit quicker from a move to the upside. Its important to pick the right strike prices for the Bull Put spread, as is a thorough analysis of the stock's chart and support levels. In this course, this is what we do - we pick Google (GOOG) as our candidate for the Bull Put, and analyze past price action, support levels and put on a successful Bull Put spread.

MONTHLY INCOME STRATEGIES PRIMER


This is a BUSY PROFESSIONALS SERIES. If you have a regular job, then you need strategies that allow you to focus on your job, but yet create a somewhat stable and reliable income stream from your investments. In this PRIMER, we dig deep into credit spreads and understand why being an Option seller (risk defined of course - no naked selling) may not be that bad after all.

CREDIT SPREAD STRATEGIES - ADVANCED CREDIT SPREADS

SECTION III - Selection Criteria for Credit spreads

Consider this course as "Advanced Credit Spreads". Both these spreads are dissected to convey an advanced level of knowledge and skill in using these credit spreads. Everything from the ideal credit spread trade setup, trade management, adjustments and exit. You're expected to know what a Bull Put and Bear call spread is.

This is a BUSY PROFESSIONALS SERIES course. If you have a regular job, then you need strategies that allow you to focus on your job, but yet create a somewhat stable and reliable income stream from your investments. The Covered Call, which we covered in Module II, is an excellent example of such a strategy. In this course, we dig deep into credit spreads and understand why being an Option seller (risk defined of course - no naked selling) may not be that bad after all. We analyze Probability, Time decay and Volatility considerations and come up with some pretty good stuff.

These spreads form the foundation blocks of "Monthly Income" strategies. And not surprisingly, all advanced strategies like Iron Condors or Backspreads use some variation of the Bear Call or the Bull Put spreads. Anyone wanting to create a consistent monthly income of 2% to 5% will use these strategies as part of their "Income" portion of their portfolio.

SECTION IV - Live trade entry, Management and Exits

What you will master

  • With Spreads, you can now be a seller of Options
  • The meaning of "defined risk" Options investing
  • Cutting-edge trade entry analysis
  • Selection of the right expiry series
  • Selection of the appropriate strike prices
  • Volatility considerations
  • Setting the optimal "width" of the Spread
  • Set your monthly target that can still let you sleep at night
  • Optimize Time decay, Probability and Premium collection variables
  • Set "pain points", and plan the exact nature of adjustments
  • Setup trades that require little monitoring
  • Why you can be wrong on direction and still make a profit
  • Ideal strategies for losing positions
  • How do you handle your position when your short strike prices are in danger

Please feel free to browse this page for a complete list of Testimonials from our clients, Blog readers and Linkedin group members.

What are the requirements?

  • Must know all the basic strategies of buying single Options strategies

What am I going to get from this course?

  • Learn Option spreads and advanced Option spreads
  • Provide the foundation to create consistent "monthly income strategies"
  • Enable someone to achieve 3 to 4% returns per month with credit spreads
  • Deep insights into tactics that can produce an edge for the Options trader
  • Setup, management and the art of adjusting credit spreads

What is the target audience?

  • Must know Options basics - Calls and Puts
  • Must know Time decay, Implied Volatility, and Option Greeks

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: INTRODUCTION TO OPTION SPREADS
16:21
We discuss the advantages and disadvantages of Option spreads, and why Option spreads can provide vital control with costs and risks. Option spreads are a step up from Single Options and mastering spreads is key to enhancing your learning on Options.
15:37
The Bull call spread is also called a Debit spread and this spread is a direct extension of the Long Call single Option. How does the Bull Call spread tackle the negatives of a Long Call position. And what are the compromises.
09:06
The Bear Call is an extension of the Short call single option. Once you put a Bear call spread, the unlimited risk profile of a Short call disappears.
09:09
The Bear Put is the extension of the Long Put single Option trade. It's a bearish debit spread and generally has very good reward to risk ratio.
08:07
The Bull Put is a mildly bullish strategy and optimizes a flat that is trading flat. Just like the Bear call spread, the Bull Put is also a credit spread.
Section 2: ALL FOUR OPTION SPREAD TRADES
22:23
Live Bull Call spread on IBM. The outlook for IBM was determined by Chart analysis and suitable strike prices and expiry series chosen for the trade. 
11:23
Management of the IBM Bull call trade to its exit.
15:00
Heavy technical analysis on the AMZN Bear call trade results in entering the trade above the resistance point for AMZN. 
10:34
The trade goes on a choppy ride but stays within the parameters, and is exited successfully.
12:25
Trade entry considerations for the NFLX Bear Put trade.
08:13
The trade gets into trouble from the time its put on. At one point, we discussed the possibility of closing the trade, but wisely chose not to do so. 
16:23
The Bear Put trade is optimized when NFLX makes a big move down, and we exit the trade profitably in stages.
11:27
The GOOG Bull Put trade is a play on Probability as well as the fact that GOOG has bounced off its support zone.
06:56
The GOOG trade is very choppy. But it never hits our adjustment point. This is a lesson that you have to give a trade enough wiggle room.
10:22
A sneak peek into the next course on Monthly income strategies. We discuss the criteria that make certain trades qualify as a "monthly income strategy".
06:24
This concludes the course on Options spreads.
Options spreads Quiz
10 questions
Section 3: CREDIT SPREAD SURGERY - Bear Call and Bull Put Mastery (Selection Criteria)
06:11
Credit spreads are the bedrock of "monthly income strategies". In this course, you'll learn to construct the ideal credit spreads, and manage them through to successful exits.
12:37
A comparison of the Bear Call spreads and Bull Put spreads - the two credit spreads. Although both these strategies are identical in their characteristics, they differ in one very big way.
09:33
Choosing the right expiry series is the first step to constructing an efficient credit spread.
09:02
The next step is picking the right strike prices. Although this is mostly an individual choice, there is a sweet spot that balances the collection of premium with the probability of success, with success being defined as the credit spreads expiring worthless. Risk versus Reward - that's what its all about.
07:36
What width of the spread gives you the edge and what are its drawbacks.
02:20
Which credit spread do you choose and why.
04:50
Last but not least - have you taken into consideration the volatility environment. This could make or break the trade. 
Section 4: LIVE BEAR CALL TRADE MANAGEMENT (Netflix and Linkedin)
05:11
Trade setup for 2 credit spreads - Netflix and Linkedin.
07:48
The Linkedin trade starts to go against us. What is the adjustment point and why. And what is the nature of the adjustment.
07:17
The first adjustment on the Netflix trade - the goal is to eke out small returns that can add up.
06:08
Linkedin continues to move against us. This is what we wanted, and results in the second adjustment.
06:16
The Netflix trade is choppy - but we are in control.
06:51
Linkedin is very bullish - and adds pressure on the trade. The goal is to get back to breakeven.
05:45
A good exit for Netflix, with a 11% return in 2 weeks.
03:56
If you can manage the losers and come to breakeven, the winners will come automatically. This is a tough trade but we end up above the water line. We hit about a 4 to 5% return on a trade that went against us from the beginning.
08:38
This lecture is a wrap-up of the course highlighting all the important points of "monthly income strategies". 
Credit spreads Quiz
5 questions

Students Who Viewed This Course Also Viewed

  • Loading
  • Loading
  • Loading

Instructor Biography

Hari Swaminathan, Options and Financial markets expert, Trader and Investor

Knowledge. Strategy. Execution.

Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options education and trading company based in Washington D.C.. Hari is an entrepreneur, everyday person and a self-taught Options expert for over 8 years. Hari has a Bachelors degree in Engineering from India, and MBA degrees from Columbia University in NYC and London Business School in the U.K

More than ever, its become important for everyday people to take control of their financial situation, and create additional income in a smart, risk-controlled manner. This is precisely my mission. Through knowledge, education and investment discipline. Options are powerful, but they have a learning curve. I've broken down all the complexities of Options in simple language that everyone can understand. The courseware uses real trade examples, always highlighting the pluses and minuses of every investment situation. Options provide the best way to take advantage of bull cycles, bear cycles and everything in between.

As someone that has self-learnt Options and through making mistakes, I can tell you Options trading is not something you should take lightly. You will hear people talking of fantastic triple and quadruple digit returns. I'm here to be brutally honest with you - 

- Be very very careful in the first 12 months of Options trading. 

- This is when everyone is the most vulnerable to losing money. 

- Your main objective during this time is to focus on learning this craft and not lose money during this time. 

Having said that, if you can get past the first 12 months and acquire the expertise in a systematic manner, true financial independence awaits. Options are a mathematical and strategic game much like Chess, and no amount of technological advances can make this skill obsolete, because the fundamentals of Options are never going to change. 

You can trade Options from anywhere in the world, regardless of how old you are. You never have to worry about job security any more because you have a skill that can produce consistent wealth month after month. 

But you have some serious but exciting work to do before you can get there, and I'm here to help you in this journey. 

Watch my Free Course for Options Trading Beginners where I draw out a detailed roadmap of what this 12-month journey looks like, and the specific strategies you should master during each step of this learning process. 

Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality of education material. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution through live trading examples. 

If you have any questions at any time, please feel free to message me on Udemy.

The order to follow on my Udemy courses

Comprehensive guide to Financial Markets, Investing and Trading

Options Trading Beginners Bundle (3-course Bundle)

Advanced Options Concepts

Options spreads and credit spreads Bundle

Technical analysis and Chart reading Bundle

After this, the order does not matter. You can take any of the courses as per your interest.

Ready to start learning?
Take This Course